RR Kabel Q2 Review - Export Challenges Results In Lower Revenue Growth; Reiterate 'Buy': Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.RR Kabel Ltd.'s performance has been muted with revenue growing at 12.5% YoY (5.2% lower than estimates), Wires and Cables revenue grew at 11.1%, which is lower than peers as the company is facing challenges in exports as availability of shipping containers has become difficult and shipping timeline to Europe has increased from 24 days to 36 days resulting in loss of some exports orders. Margins in Wires and Cables stood at 5.1% contracting sequentially by 209 bps. Margin contraction is attributed to huge volatility in commodity prices and negative operating leverage resulting on back of slower growth. On the FMEG front revenue grew by 24% yoy driven by strong performance of Fans, Appliances and Switches, losses in FMEG have come off and it is lowest quarterly loss. Reduction in FMEG loss has been on account of superior product mix and healthy volume growth. Management is confident of strong performance continuing in FMEG and breaking even in H2 FY26. On the wires and cables side management has lowered its volume growth to 15% versus earlier 20% considering export challenges and management has become conservative in its guidance given subdued performance of H1. Its capex plan of doubling the capacity of cables is underway and on track and company is parallelly working on future capex plan. Considering muted Q2 and lowering of management guidance of 15% volume growth in wires and cables we now value the company at 34 times FY27 earnings per share..Click on the attachment to read the full report:.Finolex Industries Q2 Results Review - Lower Pipe Realisation Hurt; Aims 15%+ Volume Growth In H2: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

RR Kabel Q2 Review - Export Challenges Results In Lower Revenue Growth; Reiterate 'Buy': Yes Securities

The brokerage believes the company should do well given the real-estate continues to do well and company’s has distribution network in place to tap the opportunity.

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RR Kabel Q2 Review - Export Challenges Results In Lower Revenue Growth; Reiterate 'Buy': Yes Securities

The brokerage believes the company should do well given the real-estate continues to do well and company’s has distribution network in place to tap the opportunity.

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